The short answer
A WFOE hires a foreign employee in three filings: the employer’s Foreign Work Permit Notification, the employee’s Z visa abroad, and the work permit plus work-type residence permit after entry. The company is the applicant for the first and third steps, so its own compliance record is part of the case.
The hiring decision is really a category decision. Category A covers high-end talent; Category B, the common route, expects a bachelor’s degree, two years of relevant experience and a salary at four times the local average; Category C covers temporary, seasonal and other limited cases. The candidate’s nationality, degree, experience, age and salary all feed the same assessment.
The first hire fails most often for reasons that have nothing to do with the candidate: a company with no operating record, documents that were not authenticated, a salary that does not match the contract, or work that started before the permit was issued.
What the company must have in place first
Before it can sponsor anyone, the WFOE needs:
- a business licence and company chops;
- a basic bank account and tax registration, with the company able to issue invoices;
- a social-insurance account, because foreign employees are registered like Chinese staff in most cities;
- an account on the local foreign-expert work-permit system, with the company’s legal representative and authorised representative registered;
- premises and a lease that match the registered address, since inspectors and reviewers may check;
- ideally, a first contract, invoice or payroll plan that shows the company is operating.
A company that has all six is treated as a real employer. A company that has only the licence is treated as a risk, and the file will be reviewed accordingly.
The category test that decides the hire
The work-permit categories are assessed on a points-style framework, but the practical tests are simpler:
| Category | Typical profile | Experience | Salary channel | Notes |
|---|---|---|---|---|
| A | Senior executives, scientists, high-end talent, top graduates in priority fields | Not always required | Six times the local average monthly wage | Faster processing in some cities |
| B | Professionals with a degree and relevant experience | Two years after graduation | Four times the local average monthly wage | The standard route for most foreign hires |
| C | Temporary, seasonal, quota-limited roles, some graduates | Varies | Varies | Narrower and locally controlled |
The local average wage is published by the city and revised annually, so the threshold moves. The salary declared in the application must match the employment contract and be supportable by payroll and tax records at renewal.
Age is part of the test as well: Category B generally expects the applicant to be under 60, and renewals for applicants over 60 face closer review.
Filing sequence
- Employer registers on the work-permit system and completes the company profile.
- Candidate documents are prepared: degree with apostille or consular legalisation and a Chinese translation, police clearance, medical check where required, and evidence of two years of relevant experience.
- Employer files the Foreign Work Permit Notification, usually decided within about 20 working days.
- Candidate applies for the Z visa at a Chinese embassy or visa centre, with the notification.
- After entry, the candidate completes the medical check where required, and the employer applies for the work permit card.
- Work-type residence permit is filed within 30 days of entry, and the employee is registered for social insurance and payroll withholding.
The notification is generally valid for three months from issuance, so the candidate has to apply for the Z visa within that window; if the window is missed, the employer files again. The sequence itself is not flexible: working before the work permit is issued is unauthorised employment, whatever the contract says.
The employment contract and payroll
The contract should be in Chinese (a bilingual version is fine), state the position, salary, term and probation, and match the category file. Probation limits, notice periods and severance follow the Labour Contract Law, and a fixed-term contract of one to three years is the usual starting point.
Payroll has three components the company must get right from month one: individual income tax withholding, social insurance, and the record that ties salary payments to the work-permit file. Some nationalities are covered by bilateral social-security agreements that exempt part of the contribution; the treatment should be confirmed for the candidate’s nationality rather than assumed.
If the employee will bring family, the dependant filings are separate: the spouse and children need S1 or S2 visas, and the spouse has no automatic right to work. The residency planning guide covers that sequencing.
What goes wrong in the first hire
- The company cannot show it operates. A licence with no bank account, tax filing or premises is a weak sponsor.
- The degree is not authenticated. Apostille or consular legalisation plus a Chinese translation is the baseline; an unauthenticated copy stalls the file.
- Experience is not documented. Reference letters must state the role, dates and duties, and match the CV.
- Salary does not match. A contract written for the threshold but paid differently fails at renewal and creates tax exposure.
- The candidate works before the permit. This is the most serious error and the easiest to avoid.
- The residence permit is filed late. Thirty days from entry is a hard deadline; a late filing means fines and a repair process.
The first foreign hire is easier when the company is set up for employment before the candidate is selected: bank account, tax registration, social-insurance account and a realistic salary plan. The work permit service covers the filing, the company registration guide covers the setup, and the WFOE vs JV vs RO guide explains how the structure affects sponsorship. Once the hire starts, the social insurance and income tax guide covers the monthly cost and withholding, and the annual compliance calendar lists the company filings that follow. To check a candidate’s category before making an offer, contact an advisor.